just when things look like they’re about to go slack, the phone rings and we’re of and running again..
being in business since ’75 may have something to do with it… a weekly add in the local rag does it’s part..
and having the ability to say “YES, we can do that !” all becomes part of the survival tactics for small builders…
bottom line… hold a steady course.. and don’t commit for anything that isn’t profitable just to “stay busy”…
what have you found ?
Mike Smith Rhode Island : Design / Build / Repair / Restore
Replies
Half booked through the winter already.
Reputation, referals, repeats, and really wealthy customer base.
piffen .. all work and no play makes jack..
hope you're booked into DuHammels for the first weekend in November
Mike Smith Rhode Island : Design / Build / Repair / Restore
Edited 8/15/2002 8:15:02 PM ET by Mike Smith
Sorry, I'm blowing the travel budget on a family vacation to get daughter to college in Colorado. Leaving tomorrow sometime.
Jack can stay home and work
:)Excellence is its own reward!
I sent you a message, but just in case you don't see it....
Are you in Boulder? I'll buy you lunch. You've helped me out on several of my questions, especially given your local mountain experience here, and I owe you!
Paula
I can take on one more for the winter otherwise I'm done bookin them.
dl
We have a remodel going now that has turned into the job that never ends. We bid on doing a 4' x 18' addition to close in a porch area. Once we got started on that it quickly turned into one of those "while you are here" jobs. We ended up gutting the entire house and taking over as the Design/Build team with a time and materials contract.
I don't know when we are going to be completly finished, but it will be well after the 1 yr. mark on the job. Now our customer has indicated an interest in having us do the design and build for her beach house that will be located about 90 minutes south of here.TCW Specialists in Custom Remodeling.
Tim - That isn't a bad thing being booked and booked by the same client, is it?
Now if you are constantly turning away other projects or putting them off further and further into the future that could be problematic.
I'm not sure whether to say congrats on the business or I'm sorry you can't get away from her.
SJ
Know a little about alot and alot about little.
Booking winter, nice after a sort of slow spring. As for long term ( while you are here ) jobs. I saw 3 birthdays pass on a pair of homes ,a couple of years ago, with former boss. Can be detremental to business. He's now slow, and the former customer is calling me for the extras ( different relationships), don't know if I should take the work or not, feels like cutting his throat. I will build that big new shack for her brother though!
Brudoggie
Being there can also create problems...at one time I was being kept so busy trimming by one contractor that I had to let everybody else go. It seemed like a bread and butter thing. I had no competion, and I was keeping my crew available for his every whim. My prices were high, finally he tested the waters and found someone hungry for half price, and they were'nt half bad, either...I figured, we're good, shouldn't have all the eggs in one basket anyhow, couldn't find a lick of work for over two months...competition was a step below in quality, and couldn't be there, and now I'm unfired. The bids aren't as high, but with the extras, it's the same, or more, as before. And while I may be making more money, I am cognizant of who's handing it out...my point is, now I'm getting a license and shooting for only doing specs...control of my own economic fortune has now become important...and my retirement!
Edited 8/21/2002 7:15:26 PM ET by bucksnort billy
I like that attitude !!!! Ive been the provider of my own work for 11 yrs now . Im intentionally making my posts short now, but I could ramble easily .
To the question; Im having good luck staying with my business every day . Being there to handle what might pop up seven days a week.
Tim Mooney
You guys bring up a good point of discussion in that it can be difficult to turn down those "While your here" jobs, however you do open yourselves up to putting all your eggs in one basket. Sounds like that can lead to a dry spell as you get your name back out as available for projects.
How do you normally handle these situations.
SJ
Know a little about alot and alot about little.
I've done the project that wouldn't quit too.
The vast majority of the population puts there eggs in one basket when it comes to making money. Its called "employee".
As the owner of a business, I'm not sure that puts me in a good spot. If my goal is to maximize profits, having high percentage of my income come from one place puts me in a poor position of negotiation.
I had up to 70% of my income coming from one source at one point. I found that they could ball park my income and weigh the cost of using my company against the cost of using there own work force. I think this is generally the limiting factor.
Keeping a significant customer such as that happy on a continuing basis requires a corresponding amount of your resources which in turn can prevent you from taking on more profitable ventures.
I find it important to be nimble enough to entertain all opportunities that come, and weed out the less profitable ones. Using round numbers a customer who provides 70k when my gross is 100k would be more attractive if my gross was 300k. This might put me in a better position of negotiation if he needs me more than I need him. But its got to be profitable work.
A few years ago I made a conscious decision to increase my gross. This in turn has increased my network of referrals and given me more buying power in terms of subs, suppliers and employees. It might sound counter productive but I did this without regard to increasing my margins. I now have enough work coming in that I can bid work at the desired margin. I pretty much have more work than I need, which is a good position to be in.
Tom
Edited 8/22/2002 10:34:58 AM ET by Tommy B.
Tommy - Makes a lot of sense.
When speaking about negotiating power and position I would believe that if you are spending a significant amount of time (70% in your example) on a particular project, chances are that client knows that currently your revenues are driven significantly by their project. Therefore they would hold a stronger position in any ongoing negotiations than if that $70k job was part of a $300k revenue stream as opposed to a $100k stream. Correct me if I'm wrong on that one.
I agree that being nimble enough to entertain any potential project would be the ideal situation. I have a couple Real Estate ventures and currently I have found myself in the opposite position of having too much capital tied up in those two ventures when a third potential deal comes along. I find the situations and comparisons very similar.
What a difference a thread can make, huh?
SJKnow a little about alot and alot about little.
That's the beauty of it Steve. I may not be the best at expressing my point of view on most subjects, but business seems a bit easier.
I welcome your thoughts on all subjects.Tom
Right back at ya.
SJ
Know a little about alot and alot about little.
Mike, I'm finding pretty much the same thing you described.
It can be a bit nerve-wracking at times, but I'm getting over it with a litle help from my crew.
We had a few weeks of slack between houses so I took a (yechh) landscaping job to keep the crew busy and paid.
When I handed them their paychecks that Friday I thought they were about to hand me my *ss. They told me on no uncertain terms that they were here to build houses, not install yardwalls and hot tub pads, and in the future they'd rather go fishing than work with railroad ties.
Gotta respect that, I guess.
Besides, it's really tough to convince myself these little jobs are worth the effort ("sure, I lose money on each one but I make it up in volume").
Dave